GlobalFoundries, one of the five largest contract chip manufacturers, reported yesterday its results for the second fiscal quarter, which ended on June 30 of this year. The company’s revenue decreased year-on-year by 12% to $1.63 billion and was higher than its own expectations, but this did not contribute to the growth of the manufacturer’s stock price.
Image source: GlobalFoundries
On a sequential basis, GlobalFoundries’ revenue grew 5% and net income rose 16% to $155 million, but on a year-over-year basis, the latter was down 35%. The company’s operating profit generally fell by 44% to $155 million, while the operating profit margin did not exceed 9.5%, the overall profit margin reached 24.2%. In any case, the company at least avoided losses, and against the backdrop of Intel’s disastrous report, its statistics looked quite acceptable.
In the third quarter, GlobalFoundries expects revenue from $1.7 to $1.75 billion, analysts expected approximately $1.72 billion. Specific earnings per share, according to the issuer’s own forecasts, will range from $0.28 to $0.38, with the consensus of third-party analysts at $0.36 per share. At the end of the second quarter, the company had $4.1 billion in cash and highly liquid assets. In the near future, it promises to maintain its focus on prudently allocating capital expenditures and generating maximum cash flow.